Retail Automation Market

Retail Automation Market By type, camera segment to grow at the highest CAGR during the forecast period

Retail Automation Market By implementation, the in-store segment to record the highest CAGR during the forecast period

Retail Automation Market in APAC to grow at the highest CAGR during forecast period

Growth of the retail automation market can be attributed to the increasing demand for business optimization by retailers and reduction in their operational costs, rising demand for quality and quick services, and growing demand for retail automation solutions across the globe.

Retail automation refers to the use of automation technologies and processes to carry out different retail operations. The Retail Automation Market is projected to grow from $19.0 billion by 2023, at a CAGR of 11.0% between 2017 and 2023.

Various benefits associated with retail automation include real-time information flow across critical systems that perform traditional transaction functions at point-of-sale (PoS) terminals; efficient store management to prevent losses and monitor the availability of products to avoid out-of-stock situations, and improved customer service with interactive kiosks and self-checkout systems; among others.

Increasing adoption of retail automation solutions in emerging economies incorporation of augmented reality and virtual reality in the retail sector, and development of new retail automation solutions act as growth opportunities for the retail automation market in the coming years.

Increased number of stock-keeping units (SKUs) has led to expansions in the sizes of warehouses, thereby making it difficult to carry out the effective management of warehouses using manual labor. Thus, the emergence of warehouse automation has enabled companies to increase the efficiency of their warehouse operations.

Warehouse automation enables adoption of automated conveyors, robots, and automated storage and retrieval systems, which require limited involvement of warehouse employees, to carry out different operations. Increased investments are being made across the globe to carry out the warehouse automation to improve the productivity and flexibility of different processes carried out in warehouses.

Growth of the retail automation market can be attributed to the increasing demand for business optimization by retailers.

Single item stores are dedicated stores that offer a specific category of products. These can be apparels and consumer electronics stores as well as quick-service restaurants. In such stores, losses and discount costs that are related to product stocking are crucial as seasonal products lose their value quickly. Thus, retailers use electronic shelves labeling (ESL), which allows them to change the prices of products instantly and maintain an inventory of their products, thereby reducing losses and simultaneously saving efforts of their staff.

Single item stores are adopting different automated technologies to boost the efficiency of their operations, enhance customer experience, and cater to the requirements of their customers. This, in turn, is leading to the growth of the single item stores segment of the market across the globe.

North America was the largest market for retail automation in 2016. The growth of the market in this region is driven by increased demand for sophisticated and efficient retail services and a high standard of living of its population. The adoption of retail automation by retail companies to offer easy and quick point-of-sale (PoS) services is also fueling the growth of the market in North America. The presence of top retailers such as Wal-Mart Stores, Inc. (US) and the Kroger Company (US) in North America is also contributing to the growth of retail automation in the region.